HIGH WOOL PRICES

Manawatu Standard, Volume LVII, Issue 7, 7 December 1936, Page 6

HIGH WOOL PRICES

SIGN OF CHANGED OUTLOOK. PRIME MINISTER’S "VIEWS. (By Telegraph.—Special to Standard.) “ WELLINGTON, Dee. 5. Probably the first suggestion in political circles when wool prices commenced to soar was that this would constitute a serious handicap to the Government in completing its policy of guaranteed prices to all the primary producers of New Zealand. Recent Auckland wool realisations are actually at least 40 per cent, above the average range which would be work out from the sales of the last nine or ten years. However, this does not disconcert the Prime Minister, for Mr Savage indicated to the “Standard’s” correspondent that the guaranteed price system is to be extended, as promised. In predicting that the new outlook meant maintenance of better prices, Mr Savage declared that in a country with almost unlimited production it should be possible for its people to get enough to buy sufficient of its products. “That,” lie said, “is the problem which faces the world to-day, and the world seems likely to solve it, the United States being a notable example. Its President comes back to power with, I think, a higher majority than on his first attempt, an indication that the American people are not satisfied to go back to the old order, and are prepared to stick to the man who is at least alive, arid wishing to do something to push away the obstacles from the track. A rise in the price of wool was inevitable, because th world was in rags, and has got tired of it.” NO GUARANTEE PROBLEM. “No, I do not see any problem lor our guaranteed price policy arising from the recent high prices of wool,” commented the Prime Minister when it was suggested by the interviewer that the Government would find it difficult, under such a system, to maintain returns of that type. “1 think this country is capable of guaranteeing all its producers in every sphere a minimum, and that minim should be based on New Zealand’s aggregate production in all spheres. In the case of wool, there is no reason lor us to worry about the wool farmer -—he is doing all right until the big shortage which had been created has been up, and people commence to turn from less profitable lines, and compete in an increasing wool supply. The present position does not destroy the value of the guarantee, for no one knows from year to year what is likely to happen. You can only be guided by past experience, and 1 say that the principle behind the guarantee is sound. No section of the producers should he in any doubt as to the standard of life" they are to enjoy. We have seen butter at 2s 6d a pound, but we never attempted to guarantee that.”